MUMBAI — NCC Limited’s stock cratered to its lowest level in a year early Thursday. Investors dumped shares following the company’s disclosure of a debarment order from the National Highways Authority of India.

The stock touched ₹135.00 during initial trading on the National Stock Exchange. It later clawed back some ground to ₹149.20 by around 10:09 a.m., off 0.37 percent from Wednesday’s close of ₹149.76. Volume surged with 1.53 crore shares traded, worth ₹224.47 crore. Buy orders made up 62.32 percent of the total quantity, pointing to bargain hunting at the dip.

NCC announced the penalty late Wednesday, February 18, 2026. Both the company and its step-down subsidiary, O B Infrastructure Limited, face a two-year prohibition from NHAI tenders. The ban, effective February 17, 2026, blocks participation in any NHAI bid, tender, or request for proposal. That includes roles as concessionaire, contractor, EPC contractor, or consortium member.

The order stems from a highway project in Uttar Pradesh. OBIL handled the work under a 2006 concession agreement. NCC blames delays on NHAI’s shortcomings. An arbitration panel ruled in OBIL’s favor in November 2024. NHAI is contesting that decision in the Delhi High Court.

NCC insists the debarment won’t touch its current order book or projects underway. The firm plans to fight the order in court.

Over the past year, NCC shares have shed 21.3 percent. They sit 8 percent lower year-to-date. The 52-week peak hit ₹242.15 in June 2025. NCC holds a spot in the Nifty Smallcap 100 index. Its market cap clocks in at about ₹9,362 crore.

Traders watched closely as the news rippled through. Heavy selling marked the open. Yet buying picked up as prices bottomed out. NCC’s legal battle with NHAI could drag on. Investors await court updates on the arbitration challenge.

The debarment hits at a tough time for NCC. NHAI projects form a key revenue stream for infrastructure players like it. Losing access to new bids squeezes future growth. Still, executives stress no disruption to existing contracts.

Broader market sentiment stayed mixed. The Nifty 50 edged higher amid caution over global cues. NCC’s tumble stood out in the smallcap space.